Case Studies of Value Added Production and Marketing

cookbooks which will then be offered for sale. In addition, people are invited to bring in old
family sausage or other recipes which Jim will then custom process. This not only provides a
service for customers, but is intended to serve as a product development tool. The
ButchersChop is crafted of pine and oak and is made to replicate a New England Style Barn. It
is also decorated with historical photos and other antiques from the region. Jim also plans to
include an old fashioned knife sharpening business on a custom basis. This ties into the marketing
strategy of making people feel like they are visiting a traditional meat market. A critical
aspect of the ButchersChop is also direct interaction with customers. Customers will be made
to feel as though they are the center of the business. The goal is to pull sales that are currently
wholesale to local grocers into the store. “One store in New Milford purchases about $1,200
worth of product per week and then retails it at a 20-30 percent mark-up” Jim said. “Pulling
those sales directly into the Egg & I would obviously improve the profitability, the only drawback
is the convenience offered by a full service grocer so that the wholesale market will still be
important for sales.”
Table 3. Retail Price List, The Egg & I Pork Farm, January 1998
Item Price/lb. Item Price/lb.
Fresh Pork
Smoked Pork
Bone-In Ham $2.89 Bone-In Ham $3.79
Boneless Ham $3.99 Boneless Ham $4.79
Season Shoulder Roast $4.09 Pre-Sliced Ham $5.09
Pork Steaks $3.89 Ham Steaks $4.59
Spare Ribs $3.19 Bacon Sliced (1 or 5 lb.) $4.19
Country Ribs $3.89 Slab Bacon $3.89
Loin Roast $4.29 Daisy Ham $4.29
Pork Chops 1 1/4" $4.49 Country Roast $4.59
Pork Loin $3.79 Hocks $2.89
Loin Chops $5.29
Sausage
Breakfast (Links, Bulk, Chubs) $3.19 Deli Items & Specialties
Breakfast (Patties) $3.29 Kielbasa Rings $3.89
Italian Sweet (Links, Bulk, Tube) $3.19 Kielbasa Dogs - 1 lb. $3.99
Italian Sweet (Patties) $3.29 Franks - 1 lb. $3.99
Italian Hot (Links, Bulk, Tubes) $3.19 Franks - 5 lb. $2.89
Italian Hot (Patties) $3.29 Knockwurst $4.09
Bratwurst (Links, Singles, 5 lb. Link Bulk) $3.19 Liverwurst Fresh $3.99
Butcherburgers $3.89 Liverwurst Smoked $3.79
Ham Salad $4.29
Critter Treats Head Cheese $4.19
Smoked Ears $0.79 ea. Bologna $3.99
Seeded Suet Balls $1.25 ea. Beerwurst, Krakow $4.09
One of the key problems faced by any retail outlet will be product merchandising. In order to
increase utilization of the carcass, there are multiple uses for each cut. For example, there is a
charge for bone disposal (rendering), so they are roasted and then turned into demi-glaze
bricks. These can then be used as gravy and stock for roasts. Rinds are taken off bacon and
rolled up to make chew toys which are merchandised for $0.79 each. There is approximately
$12 in value for each hog simply from the chew toys. Other specialty cuts are also made to
help differentiate products and improve sales. Rather than selling whole hogs for hog roasts,
fresh hams are held back and used instead. During the summer, sales of hams are slower and
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